Mnuchin "US Capital Considering Restrictions on Hong Kong Transfers"

"Even if the 2nd wave of COVID-19 occurs, no economic shutdown"
"Monitoring China's implementation of the US-China Phase 1 trade agreement"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Steven Mnuchin, the U.S. Secretary of the Treasury, expressed the possibility of restricting the movement of American capital to Hong Kong as retaliation against China's enactment of the Hong Kong National Security Law.

According to U.S. media on the 11th (local time), Secretary Mnuchin said during a video call with reporters that when asked, "Is the Treasury Department considering restricting the movement of U.S. capital to Hong Kong?" he replied, "Yes."

He further introduced that various capital market measures are being worked on in response to the Hong Kong Security Law.

Earlier, U.S. President Donald Trump had instructed the formation of a working group to recommend measures within the next 60 days to protect American investors due to Chinese companies not complying with U.S. accounting standards.

Secretary Mnuchin said, "The working group is reviewing accounting issues related to Chinese companies," adding, "They will produce a thorough report that strikes an appropriate balance between protecting the capital markets and addressing the current situation."

Regarding the implementation of the U.S.-China Phase One trade agreement, Secretary Mnuchin said, "At this point, we believe they (China) are complying with their obligations," but added, "However, we are watching closely."

In an interview with CNBC on the same day, Secretary Mnuchin stated that even if a second wave of the novel coronavirus infection (COVID-19) occurs, "we cannot shut down the economy again."

On the 11th (local time), appearing on the U.S. economic media CNBC, Secretary Mnuchin said, "We believe we have realized that shutting down the economy causes more damage," expressing this view.

Secretary Mnuchin also indicated the possibility of additional support, saying, "We are ready to return to Congress for more resources to support American workers. We will bring all workers back to their workplaces. That is the 'first priority' for me and President Trump, and we will do it."

This content was produced with the assistance of AI translation services.